Renshaw Bay has recruited Martin Farinola from Goldman Sachs as the sixth member to join the global alternative investment manager’s European real estate team in just over four months.
Farinola will initially aid the wider real estate senior debt focus as well as having responsibility for buying secondary and eventually primary CMBS. This may lead to a Renshaw Bay fund in the years ahead targeting RMBS, as well as B-notes, mezzanine debt and real estate-focussed high yield corporate debt.
Eventually, when the primary CMBS market returns to some form of regular issuance, Renshaw Bay will look to participate in primary securitisations.
Farinola joins in mid August, after concluding his gardening leave period from Goldman, where he was a vice-president at the investment bank’s mortgage trading desk, joining from BlackRock in September 2010.
At Renshaw Bay, Farinola will be head of mortgage trading and syndications and will report to Jon Rickert, who set up the European team in February after he was hired by founder and former JPMorgan colleague, Bill Winters.
Renshaw Bay is currently capital raising for its European senior debt fund and structured finance fund, with cornerstone investors expected to include Jacob Rothschild’s RIT Capital Partners and South African billionaire Johann Rupert’s Reinet Investments.
Rickert hired former Barclays Capital colleagues Lynn Gilbert and Christian Janssen to co-lead the alternative investment manager’s European senior debt fund – uniting the seasoned real estate bankers for a third time.
In addition, Rickert has also hired Lloyds Banking Group’s Andrew Gordon and his former JPMorgan colleague, Katie Moretti.
The three-day Global ABS conference, organised by IMN, starts this afternoon in Brussels, where delegates will consider the current state and likely prospects of the asset backed securitisation market. Greece’s General Election and the Spanish bank bailout are likely to ensure a sombre mood.
Capital market debt new issuance remains thin, with notable deals this year Blackstone’s £1bn Centre Parcs whole business securitisation, in a deal led by Royal Bank of Scotland, and Terra Firma’s £525m Four Seasons high yield corporate debt, co-arranged by Goldman Sachs and Barclays.
Both deals were previously CMBS deals, which migrated into broader corporate debt transactions, with bondholders’ interest repayments derived from rental payments from the underlying real estate but with security over the operational company, rather than the physical property.
Starwood bought $95.4m of B-notes in the re-issued Centre Parcs securitisation on 28 February, having previously held a pre-existing investment of $143.9m in the previous deal.
Later this summer, Vitus Group is set to issue Europe’s first Continental CMBS in almost five years, with an agency CMBS, bookrun by Deutsche Bank, in a capital markets deal secured by around 30,000 German multi-family properties. The deal is likely to be around €700m.
Vitus is understood to be looking to time when the deal is issued so to minimise the break costs incurred in repaying the existing Barclays Capital-issued Centaurus CMBS to bondholders.
The agency nature of the transaction prevents Deutsche Bank from underwriting the loan and reselling to bondholders. Instead, Vitus’s cost of debt is directly correlated to the price the bonds sell at.
Investment banks and asset management trading desks are likely to form the buyers for the Vitus debt. One noteable long-term buyer of German multi-family debt, seen by many as quasi residential debt exposure, is JPMorgan, although its recent $2bn, and rising, hedging losses, could limit its previous level of interest in the CMBS deal.